If You Are A Federal Contractor/Sub-Contractor Your Workers Got a Boost In Pay: $10.10 New Minimum Wage for Workers on Federal Contracts

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October 7, 2014

On February 12, 2014, President Obama signed Executive Order 13658, “Establishing a Minimum Wage for Contractors,” to raise the minimum wage to $10.10 for all workers on Federal construction and service contracts. The President took this executive action because boosting wages lowers turnover and increases morale, and will lead to higher productivity overall. Raising wages will improve the quality and efficiency of services provided to the government. The Executive Order directed the Department of Labor to issue regulations to implement the new Federal contractor minimum wage.

The Department today announced that it will publish a Final Rule implementing the provisions of Executive Order 13658. This Order applies to new contracts and replacements for expiring contracts with the Federal Government that result from solicitations issued on or after January 1, 2015 or to contracts that are awarded outside the solicitation process on or after January 1, 2015.

For more information, please visit the Wage and Hour Division’s Executive Order 13658 web page at http://www.dol.gov/whd/flsa/eo13658/ or call your favorite employment law attorney.

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